As of Jan. 1, 2013, banks will no longer be allowed to count trust preferred shares as Tier 1 capital.sounds like the guy that wrote that does not know what is a trust pfd share.
a bank forms a separate entity(a trust). the bank guarantee to pay the trust. the trust issues pfds.the bank takes the cash from the trust from the issued pfds. the advantage is the bank can now pay the trust and expense the payments, using pre tax dollars and write them off. the owners of the pfds cannot take advantage of the 15% tax limit for "qualified" payments.
got nothing to do with fnf, or with most pfds issued by banks. the word trust is prominent on any such issue.
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